INVERTO Case: Fast Dish Restaurant

Note for Interviewer

Handout exhibit 1.1

Note for Interviewer

Additional information that can be shared on request:

Note for Interviewer

As shown in the table, Fast Dish currently purchases several Fryer models with different prices. Exemplary procurement levers, that should be further investigated, are bundled demands and product standardization.

Demand bundling (considering potential risks):

• Assignment of current demands to most competitive suppliers (commercially)
• Outphasing of non-competitive suppliers

Product standardization (considering potential risks):

• Definition of preferred Fryer out of models A, B & C and global standardization of usage over franchisees
• Outphasing of non-preferred Fryer

Potential risks that should considered can be the following:

• Supplier dependencies due to potential shift of demands to most-competitive supplier (negotiation power, supplier default risk, etc.) → 2nd source etc. should be considered in category strategy
• Product dependencies in case of solely one used model over franchise → Product substitutes shall be considered in category strategy

Note for Interviewer

Hand out exhibit 2.1 and 2.2

Note for Interviewer

Additional information that can be shared on request:

Note for Interviewer

The selection beneath covers the categories product, processes & organization and three potential procurement levers in the sub-category ‘Fryers’ in order to reduce the company’s carbon emission. The interviewee should be able to name at least 2 levers per category.

Product:

• Optimize material sourcing
• Challenge and reduce demands
• Optimize CO2 design materials

Processes:

• Optimize logistics network planning
• Use renewable energies
• Optimize manufacturing processes

Organization:

• Implement code of conduct
• Track and control carbon footprint/ set up governance
• Engage all relevant stakeholders

Note for Interviewer

Handout exhibit 3.1

Note for Interviewer

Additional information that can be shared on request:

Note for Interviewer

The interviewee should be able to address several approaches that lead to the targets:

a) Supply Chain Resilience:

• Global approach of the tender in order to build up local sources
• Ask suppliers to consider all of their global locations & production facilities
• Challenge the business-continuity-management/ risk management of the supplier

b) Sustainability:

• Ask for sustainability strategy documents, e.g. certification of the supplier, e.g. DIN ISO 14001
• Challenge approaches of the supplier to reduce supply chain emissions (Tier-2, Tier-3)
• Include sustainability rating in RfQ evaluation process

c) Both:

• Selection of regional suppliers minimizes the risk of a supply default and, due to the shorter logistics routes, CO2 is saved.
• Selection of sustainable suppliers results in a better environmental footprint and reduces the risk of delivery failure through political influences
• Increasing the degree of digitalization makes the supply chain more secure and ensures that logistics resources are saved by improved planning

Note for Interviewer

Potential approaches for Fast Dish are:

• Adjustment of Fast Dish’s ‘Kitchen Equipment’ to eco-friendly setting (e.g. temperature of fryers etc.)
• Review of opening hours, delivery services, restaurant lighting, heating & air conditioning
• Conducting workshops with Fast Dish engineers and suppliers in order to develop carbon emission reduction approaches
• Establish company guidelines for sustainability incl. instructions for local management
• Training for employees to implement energy-reduction measurements in the restaurants
• Implement sustainability guidelines in company’s philosophy that also have a positive impact on energy usage, e.g., "refuse, reduce, reuse" principal: 
  > Refuse food waste (e.g. first in first out)
  > Reduce useless lighting (e.g. restrooms)
  > Reuse building materials (e.g. spare parts from discarded fryers)